Analyst Scott Berg of Needham reiterated a Buy rating on Monday.com, retaining the price target of $250.00.
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Scott Berg has given his Buy rating due to a combination of factors that suggest a positive outlook for Monday.com despite some recent challenges. The company is expected to experience a minor impact from changes in Google’s pricing, which will likely lead to a slight reduction in its growth target from 30% to 25%. However, this adjustment is seen as manageable, and the company’s strategic shift towards larger, higher-quality deals is expected to offset the impact of reduced self-service sales.
Additionally, the company’s focus on AI monetization and a $300 million CRM annual recurring revenue target are promising indicators of future growth. The stabilization of net revenue retention and confidence in accelerating growth for the fourth quarter further support the Buy rating. Despite a significant decline in share price, the adjustment in growth expectations is viewed as an overreaction, reinforcing the belief in the company’s long-term potential.
In another report released on August 12, Morgan Stanley also upgraded the stock to a Buy with a $260.00 price target.